In a recent Automotive News article, Lithia elaborated on their ambitious goal to achieve $50 billion in revenue by the close of 2025. An assertive plan that involves persisting in the acquisition of businesses in both vertical and adjacent markets, specifically highlighting consumer insurance. Gather, an innovator in the insurtech landscape, has been closely following Lithia's strategic approach and positions itself as a key potential ally for providing consumer insurance solutions within the dealership network.
Unlike embedded insurance companies who have sought to incorporate insurance shopping into the car buying experience, Gather has pioneered a solution that takes shopping out of the car deal and instead simplifies staying with the customer’s existing insurance provider by automating the validation and update process.
The implications of Gather's software are extensive and impactful. Not only does its 50 second process accelerate operations but it also ensures compliance with Safeguards regulations as it relates to the handling of the customer’s insurance data. Moreover, it assists in sealing more deals.
The logic behind this is straightforward: When consumers calculate the total cost of owning a vehicle – combining the monthly car payment with the insurance payment – their willingness to spend on the vehicle itself often decreases. Dealers frequently witness customers walking away from transactions once they recognize the aggregate cost of the monthly car payment and insurance. Gather's solution mitigates this challenge.
Furthermore, every vehicle sold that goes through the Gather process is protected against loss by the Gather Guarantee™ - ensuring that if the vehicle is damaged prior to the dealership receiving funding on the sale, the dealership will not be responsible for the loss.
As Lithia continues on its ambitious journey towards $50 billion in revenue through expansion and innovation, companies like Gather are positioned to collaborate in this venture. By revolutionizing the insurance administration process in-dealership with an automated approach, they can boost customer satisfaction and close more deals all while staying compliant with Safeguards laws.